FX.co ★ Bitcoin Hits Five-Week Low

Bitcoin slid to about $74,000 in late May, marking its lowest level in more than five weeks amid signs of cooling institutional demand. US spot Bitcoin ETFs have recorded roughly $1 billion in net outflows so far this month, ending a two-month run of inflows. Implied volatility in Bitcoin has also fallen to its lowest point in nine months, as subdued trading activity and fading speculative interest have curbed demand for downside protection in the options market. Risk appetite has been further undermined by persistent uncertainty in the Middle East, where renewed hostilities have cast doubt on the prospects for a durable agreement despite ongoing negotiations. At the same time, markets remain focused on regulatory developments in the crypto sector, with the Clarity Act having passed the Senate Banking Committee earlier this month, although analysts caution that the bill still faces a highly uncertain legislative path.